Azul Closes Acquisition of TwoFlex

14 May 2020 .
1 min read

São Paulo, May 14, 2020 – Azul S.A. “Company” (B3: AZUL4, NYSE: AZUL) announces today the closing of the acquisition of Two Taxi Aéreo Ltda “TwoFlex”. Payment will be made in up to 30 monthly installments, subject to certain financial and operating conditions, and a final payment of up to R$30 million, which shall be deposited in escrow as collateral in favor of the Company for a determined period. The total purchase price will be R$123 million.

The transaction was approved without restrictions by the Brazilian Administrative Council for Economic Defense (CADE – Conselho Administrativo de Defesa Econômica) on March 27, 2020.

TwoFlex is a domestic airline based in Jundiaí, Brazil. It was founded in 2013 and offers regular passenger and cargo service to 39 destinations in Brazil, of which only three regional destinations are currently being served by Azul. TwoFlex also holds 14 daily departure and arrival slots on the auxiliary runway of Congonhas, São Paulo’s downtown airport. Congonhas is a particularly coveted airport because of its proximity to São Paulo’s business districts. Currently, our two larger competitors, Gol and LATAM, control most of the flights in Congonhas. TwoFlex’s fleet of 17 Cessna Caravan aircraft, a versatile and cost-efficient regional turboprop with capacity for nine passengers, will be important as Azul continues to strengthen its network capilarity in the Brazilian regional market for passenger and cargo services.